WAYNE, Pa., Jan. 23, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in United States District Court for the Central District of California on behalf of all persons or entities that purchased the common stock of Calavo Growers, Inc. ("Calavo" or the "Company") (NASDAQ: CVGW) between March 5, 2012 and January 14, 2015, inclusive (the "Class Period").
Calavo shareholders may, no later than March 23, 2015, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Calavo and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/cvgw.
Calavo is a global leader in the avocado industry and an expanding provider of value-added fresh food. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. Specifically, the Complaint alleges that the defendants failed to disclose the following: (1) Calavo failed to maintain an accurately valued contingent consideration pursuant to its acquisition of Renaissance Food Group, LLC ("RFC"); (2) Calavo overstated its non-cash operating expenses; (3) the Company lacked adequate internal controls over financial reporting; and (4) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times. As a result of defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on January 15, 2015, Calavo announced that it would record a non-cash charge – which the Company would treat as an amortization expense – totaling, over all periods, $88.9 million before tax ($54.0 million net of tax) related to the misstatement in its treatment of contingent consideration.
On this news, shares in Calavo fell almost 10%, closing at $43.07 per share on January 15, 2015, on high trading volume.
If you are a member of the class, you may, no later than March 23, 2015, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
SOURCE Ryan & Maniskas, LLP